U.S. Debt Surges $392.75B In 30 Days, Hindering National Security – Cato Institute Warns
The national debt of the U.S. is increasing at an alarming rate.
According to new data from the government’s FiscalData system, the country’s overall public obligation reached $32.659 trillion on July 27th. That’s a $392.75 billion rise in the previous month and a $66.41 billion gain in the last week alone.
The Federal Reserve Bank of St. Louis says that America’s quarterly interest payments on its debt have increased significantly to about $1 trillion.
The new data comes as the Cato Institute warns about America’s financial outlook.
According to the libertarian think group, the country’s ever-expanding debt is now a national security threat.
“Delaying responsible fiscal reforms in the face of growing federal debt invites economic and national decline. High and rising U.S. federal debt leads to suppressed private investment, reduced incomes, and increased risk of a sudden fiscal crisis.
A weaker economy and growing concerns by international bondholders of U.S. treasuries about the government’s ability and willingness to service its debt—without resorting to high inflation—will drive up interest costs and eventually impact America’s international standing negatively…
National defense is a core responsibility of the federal government. To maximize Americans’ safety and prosperity, prudence should guide both strategy and the budget. A dire fiscal crisis would erode the economic foundation of America’s strength, limiting U.S. capacity to defend its vital interests at home and abroad.”
According to the Cato Institute, entitlement reform is required since Social Security, Medicare, Medicaid, and other needs-based programs now account for half of the federal budget, with defense spending accounting for one-fifth.
The Institute urges U.S. politicians to establish a debt commission to address entitlement reform, with proposals becoming law once the President approves.
“A well-designed commission will be composed of a diverse group of experts, guided by clear goals established by Congress, and whose recommendations will be self-executing after Presidential approval; benefiting from so-called fast-track authority.
Asking members of Congress to affirmatively vote for entitlement reforms recommended by such a commission will most likely undermine the debt commission’s recommendations from becoming law. Only a few legislators are willing to take risks or be courageous in support of necessary and yet unpopular changes to Medicare and Social Security.
Unsustainable fiscal policy imperils American economic and military strength. By reforming entitlement programs and reducing spending, legislators can prevent high debt from undermining America’s prosperity and security. A well-designed debt commission can help Congress to see this through.”
